Upwork Inc. (NASDAQ:UPWK) President and CEO Hayden Brown recently sold 10,000 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at a weighted average price of $15.8462, amounting to a total transaction value of approximately $158,462. The sales were conducted under a pre-arranged Rule 10b5-1 trading plan adopted by Brown in December 2023. Following this transaction, Brown retains ownership of 1,168,850 shares in the company. The sales were executed in multiple transactions, with prices ranging from $15.55 to $16.19 per share.
In other recent news, Upwork Inc. reported a solid Q3 growth despite market challenges. The online freelancing platform's revenue rose by 10% year-over-year, hitting $193.8 million, and a record net income of $27.8 million was reported. The company also revealed strategic organizational changes, including a 21% reduction in headcount, which is expected to save $60 million annually.
Both the marketplace and managed services sectors saw growth, with marketplace revenue increasing by 12% to $167.3 million and managed services revenue growing by 5%. Additionally, Upwork launched Business Plus to cater to larger clients and announced plans to acquire the AI-native search company Objective to enhance AI capabilities.
In terms of future expectations, Upwork forecasts Q4 2024 revenue between $178 million and $183 million, with full-year revenue projected at $756 million to $761 million, indicating a 10% growth. However, the company anticipates a slight decrease in take rates moving forward due to macroeconomic pressures. These are the latest developments in the company's journey.
InvestingPro Insights
While Upwork's CEO Hayden Brown has recently sold shares, it's important to note that this was part of a pre-arranged trading plan. Looking at the broader picture, InvestingPro data reveals some interesting insights about Upwork's financial health and market performance.
As of the last twelve months ending Q3 2023, Upwork reported a revenue of $761.78 million, with a robust gross profit margin of 76.72%. This impressive margin is reflected in one of the InvestingPro Tips, which highlights Upwork's "impressive gross profit margins." This strong profitability metric suggests that the company maintains efficient operations in its core business model.
Moreover, Upwork's stock has shown significant momentum recently. InvestingPro data indicates a 50.86% price return over the past month and a 66.35% return over the last three months. This aligns with two InvestingPro Tips noting "strong return over the last month" and "strong return over the last three months." These substantial short-term gains might explain why the stock is currently trading at 88.36% of its 52-week high.
Another noteworthy InvestingPro Tip is that "management has been aggressively buying back shares." This practice often signals management's confidence in the company's future prospects and can potentially increase shareholder value.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Upwork, providing a deeper understanding of the company's financial position and market outlook.
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